Dogwifhat (WIF), the popular Solana-based meme coin, is poised for a price decline as its daily chart flashes a bearish signal. However, token holders appear to be dumping their holdings on exchanges, as reported by the on-chain analytics firm Coinglass.
Today, December 18, 2024, the overall cryptocurrency market is witnessing a price decline. Amid this, some assets seem to be consolidating in a tight range, while others fail to hold crucial levels.
The WIF meme coin has failed to hold its critical golden Fibonacci level and the support of the 200 Exponential Moving Average (EMA) on the daily time frame.
According to CoinPedia’s technical analysis, this breakdown has shifted the meme coin into a bearish trend. Based on the recent price action, if WIF closes a daily candle below the $2.565 level, there is a strong possibility it could decline by 23% to reach the next support level at $2.
This bearish outlook is further supported by the on-chain analytics firm Coinglass. Data from WIF’s spot inflow/outflow metrics revealed that exchanges have witnessed a significant $10 million worth of WIF inflows in the past 48 hours.
This substantial inflow indicates a bearish sign for holders, as inflow refers to the movement of assets from whale wallets to exchanges, showing a lack of interest in holding. This could result in selling pressure and further price decline.
When combining these on-chain metrics with the technical analysis, it appears that bears are currently dominating the meme coin, which could support short sellers in achieving a 23% price decline in the future.
At press time, WIF is trading near $2.52 and has experienced a price decline of over 12% in the past 24 hours. During the same period, the meme coin’s trading volume jumped by 24%, indicating heightened participation from traders and investors compared to previous days, as they may be safeguarding their assets.
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